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The price of the largest altcoin Ethereum (ETH) has increased by 4% in the last 24 hours to over $2,900, following a substantial purchase by a whale-level investor, raising expectations among investors. Since the beginning of the year, Ethereum has recorded a 24% increase and could be preparing for a new surge potentially targeting $4,000 as optimism among investors continues to rise.
Whale Investor Buys Large Amount of ETH
One of the main factors behind today’s rise is the accumulation of a significant amount of ETH by a whale-level investor. According to data from Lookonchain, the whale used 60 million USDT to purchase 21,353 ETH at an average price of $2,810 per ETH in a series of transactions that began with the withdrawal of 100 million USDT from the major cryptocurrency exchange Binance. This accumulation trend has been ongoing since February 8, with the investor collecting approximately 52,759 ETH worth about $145.4 million from both centralized and decentralized exchanges.
The significant purchases by the whale underscore the growing confidence in Ethereum’s potential amid ongoing market volatility and are fueling a bullish sentiment among ETH investors. However, the path to a significant resistance level of $3,000 continues to be challenging, as historical data shows that surpassing such a price level has not been easy.
Investors Remain Cautious
On the other hand, investors continue to exercise caution, considering Ethereum’s past price trends of sharp rises followed by significant corrections. For example, three weeks before April 3, 2022, the price of the altcoin king had risen by 42% to $3,580 and then fell by 46% in the following 40 days. This historical precedent serves as a reminder of the high volatility in the cryptocurrency market.
Market participants are also closely monitoring the likelihood of approval for a spot Ethereum exchange-traded fund (ETF) by May 23, 2024. Expectations are high for the spot Ethereum ETF, which several traditional investment firms, including VanEck, Kraken, and BlackRock, are racing to get SEC approval. Despite these expectations, the SEC most recently postponed its decision on BlackRock’s iShares Ethereum Trust, citing the need for additional time to carefully review the application, until March 10, 2024.
While the delay in the SEC’s decision reflects the regulatory complexity surrounding crypto investment products, the growing interest of traditional investment firms in the cryptocurrency space is evident. Despite the uncertainty surrounding ETF approval, the intense accumulation of Ethereum by institutional investors and the likelihood of broader market adoption continue to boost optimism among Ethereum supporters, paving the way for potential price increases in the short term.
